pools

Pools provide liquidity for ensurance coins, enabling trading, price discovery, and yield generation for liquidity providers.

why

Coins need markets. Without liquidity:

Pools create deep, accessible markets that enable ensurance to function as a financial system.

Liquidity pools are smart contracts holding pairs of tokens:

Pool: $ENSURE / USDC

Liquidity Provider deposits:
- 10,000 $ENSURE
- 10,000 USDC

Receives:
- LP tokens representing share
- Trading fees from swaps

Traders swap against the pool. Providers earn fees.

Type	Description	Use Case
Primary pools	Major pairs with deep liquidity	$ENSURE/USDC, $ENSURE/ETH
Ecosystem pools	Ecosystem coin pairs	$WETLANDS/USDC
Cross pools	Ensurance coin pairs	$ENSURE/$WETLANDS

Liquidity providers earn from:

Source	Description
Trading fees	Percentage of each swap
Protocol incentives	Additional rewards for LPs
Emissions	Token distributions to pools

To provide liquidity:

LP tokens represent your share of the pool and can be withdrawn anytime.

To remove:

Liquidity providers face impermanent loss when token ratios change:

Scenario	Impact
Tokens stay same ratio	No impermanent loss
One token rises significantly	LP has less of rising token
One token falls significantly	LP has more of falling token

Fees earned may offset impermanent loss. Evaluate based on expected volatility and fee generation.

Pools are deployed on Aerodrome (Base L2):

Feature	Description
AMM type	Concentrated liquidity (ve(3,3))
Fee tiers	Variable by pool
Gauge voting	Emissions directed by voters

GET /api/pools              # All ensurance pools
GET /api/pools/{address}    # Specific pool data

For ensurance participants:

Goal	Strategy
Passive yield	LP in stable pools (lower IL risk)
Active yield	LP in volatile pools (higher fees, higher IL)
Governance	Lock LP tokens for voting power